Can you please develop an AFL for the below mentioned strategy:
Basic Setup 15 Minute Intraday Chart with minimum 30 days data backfill.
Indicators 5 Days Exponential Moving Average (DEMA) & 21 DEMA. Optional Swing Setting with 0.10% setting for easy reference of Tops & Bottoms.
Strategy Will go long when 5DEMA crosses 21 DEMA from below and will exit long as well as go short when 5DEMA crosses 21 DEMA from above. Simple System, thats it! Please note that you will always carrying Long or Short positions once you entered in to the trade. If first trade is Go Long, Buy 1 Lot of Nifty and when there is reversal sell 1 lot which you are long and sell one more lot as a Short sale.
Stop Loss There is in built stop loss in the system. You need to c/fd your positions till next crossover happens. Hence you will be with the market and with the on-going trend, just before it reverses. Also note that since markets are always volatile, you will get whipsawed very easily. Do not worry, system is back tested and you will surprise to see that maximum loss was just 83 points and consecutive loss (in 6 trades) was 231 points.
Profits Well before following this practically, I did mock trading for 1 month and found excellent response from my strategy. However, practically doing overnight positional trades very initially difficult and I was getting carried always by analysts on TV channels. But as I decided stick to the charts and that paid me off. After 2-3 initial loss trades I got big profit and my account size started getting bigger.
It would be advisable to follow basic money management rules. Like I did, I started with initial capital of Rs 1, 00,000 and traded 150 Nifty at a time. No less and No more. Money management is crucial part of any strategy.
